Central Bank of Bahrain launches the FinHub 973 platform

By Edil Corneille

The Central Bank of Bahrain, in cooperation with the Bahrain Economic Development Board, Bank ABC, ila Bank, BENEFIT, National Bank of Bahrain (NBB) and Bahrain Islamic Bank (BisB), launched FinHub 973. Said to be the first comprehensive digital FinTech lab in the region, regulated by the Central Bank of Bahrain, FinHub 973 will aim to create a collaborative ecosystem by establishing a gateway for investment opportunities, while fostering innovation and supporting integration between financial institutions and FinTech startups.

FinHub 973 will be powered by FinTech Galaxy’s FinX22 platform, which is a cloud-based open innovation platform. The FinX22 platform will offer an open banking API sandbox that enables FinTech startups to develop, test and deploy solutions.

Through an AI-powered global FinTech marketplace, FinHub 973 will aim to connect financial institutions in Bahrain and the region globally. The digital lab will offer matchmaking and crowdsourcing capabilities.

Rasheed Al Maraj, Governor of the Central Bank of Bahrain enthused, “We are pleased to launch the FinHub 973 digital fintech lab that will support a seamless transition into digital banking operations, while accelerating the transformation towards an AI-powered digital economy.”

H.E. Al Maraj enunciated, “The Covid-19 repercussions have proven the great importance of expanding digital banking and providing appropriate solutions for electronic payment systems. The Central Bank has early realized the importance of continuously developing the banking sector infrastructure, putting itself at the forefront of regulatory bodies that support innovation in order to establish Bahrain’s position as a top financial center. The launch of FinHub 973 reaffirms the vision of the Central Bank of Bahrain to expand infrastructure in financial technology, unlock innovation opportunities, and introduce new and innovative financial products to the market.”

The launch of FinHub 973 follows the Central Bank’s recent initiatives to promote innovation in the Bahrain financial sector, including the launch of the Regulatory Sandbox in 2017, establishment of a dedicated FinTech and Innovation Unit at the bank, and issuing regulations for open banking, crypto-asset platform operators, digital financial advice (robo-advisory), cloud computing and insurance aggregators.

FinHub 973 will enable financial institutions to organize virtual hackathons and challenges. The platform will also content on the FinTech sector financial laws and regulations in the Kingdom of Bahrain, through an interactive chatbot.